Dividend Reinvestment Calculator
Compare reinvesting dividends with taking them as cash, after dividend growth, price growth, tax and fees.
Dividend Reinvestment Calculator
Final Value (Reinvested)
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Final Value (Cash Dividends)
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Shares Owned (Reinvested)
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Shares Owned (Cash)
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Advantage of Reinvesting
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Total value by year
Year-by-Year Comparison
| Year | Share price (₹) | Net dividends (₹) | Shares (reinvested) | Value reinvested (₹) | Value with cash (₹) | Difference (₹) |
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Assumptions & method
- Dividends are paid once a year at the end of each year. Dividend per share in year t = starting price × yield × (1 + dividend growth)^(t−1). The yield is measured on the starting price.
- The share price grows at a constant rate. Year-end price = starting price × (1 + price growth)^t. Dividends are reinvested at that year-end price with no spread.
- Tax: the tax % you enter is deducted from each gross dividend before it is reinvested or counted as cash. Tax on any price gain at sale is not modelled.
- Fees: the annual fee % reduces the number of shares each year, in both scenarios, before the dividends for that year are calculated.
- Without reinvestment, net dividends are kept as cash that earns nothing. With reinvestment, shares are fractional.
- Real dividends and prices vary and can be cut. Constant growth rates are simplifications, so treat the output as an illustration only.
Results are estimates based on the figures you enter. They are not guarantees and not financial advice.
What is dividend reinvestment (DRIP)?
A dividend reinvestment plan uses each dividend to buy more shares of the same stock instead of paying it out. Next year those extra shares earn dividends too, so the holding compounds in share count as well as in price. The comparison here keeps everything else equal: same shares at the start, same price path, same dividend growth, same tax and fees. The only difference is what happens to the net dividend, bought back as shares or left as idle cash. The gap grows with a higher yield, longer time and stronger price growth. When price growth is weak or negative, reinvesting buys more shares cheaply but also adds exposure to a falling holding, so the benefit is not guaranteed.